The Debt Ratio of Jackson's Shoes Is

Multiple Choice

The debt ratio of Jackson's Shoes is .9 and the debt ratio of Billy's Catering is 1.0. Based on this information, an investor can conclude:

A) Billy's Catering has a lower risk from its financial leverage.
B) Billy's Catering has the exact same dollar amount of total liabilities and total assets.
C) Billy's Catering finances a relatively lower portion of its assets with liabilities than Jackson's Shoes.
D) Jackson's Shoes has a higher risk from its financial leverage.
E) Jackson's Shoes has less equity per dollar of assets than Billy's Catering.